Lots of Rules Changes Needed: Gold Prices Capped Around $1700… For Now

from WallStForMainSt

Jason talks about Stephanie Pomboy of Macro Mavens wondering recently why gold prices are are not well above $1700/oz given the current state of the global economy and the policy responses by central banks & governments?

The answer why is that a lot of paper price manipulation and rules changes have occurred in the last 8-9 weeks since the last week of March 2020 to prevent gold prices for going above $1800.

Some of these rules changes include multi0ple changes of the margin requires for being long gold futures contracts and also what types of gold bars are even allowed to be delivered.

We also found out from Ronan Manly in the last few weeks that the Bank of England (BOE) had to bailout HSBC Bank, custodian of the GLD to prevent a default on the LBMA: Amid London gold turmoil, HSBC taps Bank of England for GLD gold bars https://www.bullionstar.com/blogs/ron…

Apparently, HSBC Bank lost $200 million dollars in a single day of gold trading on exchange for physical (EFP) mark to market losses: HSBC lost $200 mln in a day on paper as coronavirus dislocated gold market https://mobile.reuters.com/article/am…

2 Recent Craig Hemke Articles On What’s Happened In The Last Few Months:
1) A Crisis in Confidence – Craig Hemke (April 7, 2020) https://www.sprottmoney.com/Blog/a-cr…
2) A Crisis of Confidence, Part Two – Craig Hemke (May 19, 2020) https://www.sprottmoney.com/Blog/a-cr…

UPDATE: Many bullion banks now considering leaving or drastically reducing trading on the COMEX: https://www.reuters.com/article/us-he…

The history of paper price gold & silver manipulation is extremely well documented by the Gold Anti-Trust Action Committee (GATA) http://www.gata.org/ and includes the public London Gold Pool of the 1960s https://en.wikipedia.org/wiki/London_…

How well does gold do during a deflation?
1) What Happens to Gold During a Deflationary Crisis? https://www.equities.com/news/what-ha…
2) Deadly Deflation Myths http://danielamerman.com/articles/201…
3) Gold in Deflation: Which Wins? https://www.bullionvault.com/gold-new…

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